October 2007
How to get the best value from your cable-TV provider
Even if you're not in the market for a new TV, you might be wondering whether it's time to change your TV service. Ads from
cable companies promising more high-definition programming, improved picture quality, easy recording, and more could tempt
you to upgrade your package.
Cable rates have almost doubled over the last decade, according to the Federal Communications Commission. Increases were lowest in the few markets with more than one cable company. But it can be hard to compare pricing plans from different providers because of the variations in channel lineups, surcharges for premium channels, add-on fees, and more.
Even the packages and prices from a single company vary from market to market. Limited-time promotions and bundles add yet another variable. Hardware costs and other fees can also jack up the total.
One surprising way to keep costs down is to ask for a lower price. With competition from satellite services such as DirecTV and Dish Networks as well as fiber-optic-based video services from AT&T and Verizon, your current provider might be willing to negotiate if you seem ready to jump ship.
Here are other factors to consider when evaluating your cable-package options:
Equipment costs. With cable, there's typically no up-front costs or equipment to buy. You rent a set-top box or CableCard from your local cable TV service provider. HD digital-cable boxes usually rent for $5 to $10 a month, often the same as a standard-definition digital box. CableCards cost about $2 a month; you can use them only with a digital-cable-ready TV. One negative: CableCards don't support interactive services such as video on demand.
Instead of a regular digital-cable box, you can rent one with an integrated digital video recorder, often for the same fee plus a $10 a month programming charge. Most DVRs record about 30 hours or so of HD (more of standard definition) on a hard drive. You can pause and rewind, then fast-forward live TV or previously recorded shows.
Renting gear rather than buying eliminates up-front costs and fears that hardware you spent hundreds on will soon be obsolete. But rental costs add up over time and you're stuck with what the cable company offers, so you might not be able to get newer, better equipment whenever you want it.
In most cases, cable service hasn't required a contract, so there have been no early-cancellation penalties. But increasingly you might have to agree to a long-term contract to get a promotional rate or discounted bundled services.
HD costs. Some cable companies offer bare-bones digital packages, $15 to $20 a month, with only major broadcast networks in HD. Midrange, expanded packages with more channels cost $40 to $50 a month. Some companies include HD versions of those channels at no charge while others tack on a $10 a month fee for HD. Top-tier packages with premium movie channels in HD are about $70 to $100.
Service bundles. Most digital-cable services offer "triple plays" combining digital TV, digital phone, and broadband Internet access at discounted rates. Most bundles cost about $100, usually for a one-year promotional period. Prices rise after that. Besides getting a discount, you consolidate dealings and bills with one company.
Video on demand. Digital cable offers true video on demand, including HD, through digital-cable boxes (but not CableCards). You can order movies, sports events, and shows from premium channels, such as HBO and Showtime, and watch them whenever you like, usually within a 24-hour window. You can pause, fast-forward, and rewind.
All cable companies offer standard-def VOD. Some also offer HD on demand for $4 to $5. Many have some free VOD, often children's programming.
Cable rates have almost doubled over the last decade, according to the Federal Communications Commission. Increases were lowest in the few markets with more than one cable company. But it can be hard to compare pricing plans from different providers because of the variations in channel lineups, surcharges for premium channels, add-on fees, and more.
Even the packages and prices from a single company vary from market to market. Limited-time promotions and bundles add yet another variable. Hardware costs and other fees can also jack up the total.
One surprising way to keep costs down is to ask for a lower price. With competition from satellite services such as DirecTV and Dish Networks as well as fiber-optic-based video services from AT&T and Verizon, your current provider might be willing to negotiate if you seem ready to jump ship.
Here are other factors to consider when evaluating your cable-package options:
Equipment costs. With cable, there's typically no up-front costs or equipment to buy. You rent a set-top box or CableCard from your local cable TV service provider. HD digital-cable boxes usually rent for $5 to $10 a month, often the same as a standard-definition digital box. CableCards cost about $2 a month; you can use them only with a digital-cable-ready TV. One negative: CableCards don't support interactive services such as video on demand.
Instead of a regular digital-cable box, you can rent one with an integrated digital video recorder, often for the same fee plus a $10 a month programming charge. Most DVRs record about 30 hours or so of HD (more of standard definition) on a hard drive. You can pause and rewind, then fast-forward live TV or previously recorded shows.
Renting gear rather than buying eliminates up-front costs and fears that hardware you spent hundreds on will soon be obsolete. But rental costs add up over time and you're stuck with what the cable company offers, so you might not be able to get newer, better equipment whenever you want it.
In most cases, cable service hasn't required a contract, so there have been no early-cancellation penalties. But increasingly you might have to agree to a long-term contract to get a promotional rate or discounted bundled services.
HD costs. Some cable companies offer bare-bones digital packages, $15 to $20 a month, with only major broadcast networks in HD. Midrange, expanded packages with more channels cost $40 to $50 a month. Some companies include HD versions of those channels at no charge while others tack on a $10 a month fee for HD. Top-tier packages with premium movie channels in HD are about $70 to $100.
Service bundles. Most digital-cable services offer "triple plays" combining digital TV, digital phone, and broadband Internet access at discounted rates. Most bundles cost about $100, usually for a one-year promotional period. Prices rise after that. Besides getting a discount, you consolidate dealings and bills with one company.
Video on demand. Digital cable offers true video on demand, including HD, through digital-cable boxes (but not CableCards). You can order movies, sports events, and shows from premium channels, such as HBO and Showtime, and watch them whenever you like, usually within a 24-hour window. You can pause, fast-forward, and rewind.
All cable companies offer standard-def VOD. Some also offer HD on demand for $4 to $5. Many have some free VOD, often children's programming.
